SE Asia Stocks-Most rise; Singapore hits over one-month closing high

By Nicole Pinto June 29 (Reuters) – Most southeast Asian stock markets rose on Thursday ashigher crude prices and positive sentiment from overnight gains on Wall Streetdrove up shares in the region, while Singapore closed at an over one-month high. U.S. banking shares rallied after the Fed approved plans from the 34 largestlenders to use extra capital for stock buybacks, dividends and other purposes.

Meanwhile, crude oil rose for a sixth straight session to its highest sinceJune 19 on a decline in U.S. output. “Last week, there was concern with lower-than-expected inventories and soforth. Now that oil prices have stabilized, the market is reacting positively,”said Victor Felix, an equity analyst with AB Capital Securities. Singapore shares closed 1.3 percent higher as heavyweights DBS GroupHoldings and United Overseas Bank gained 2.5 percent each. Singapore’s central bank said its investment gains on official foreignreserves quadrupled to S$21.9 billion ($15.80 billion) in the last financialyear, helped by a recovery in the global financial market. Vietnam shares rose 0.4 percent as Joint Stock Commercial Bank forInvestment and Development of Vietnam rose 1.8 percent and MilitaryCommercial Joint Stock Bank gained 2.3 percent. Philippine shares closed 0.9 percent lower at an over one-month low,dragged by the real estate and telecommunications sectors. PLDT and Ayala Land fell 3.6 percent and 2.3 percent,respectively. “The Philippine peso is weakening against the dollar. That is also puttingpressure on equities,” Felix added. Investors have trimmed their long positions in most Asian currenciescompared with two weeks ago, a Reuters poll showed, amid jitters that theEuropean Central Bank may be getting ready to reduce its aggressive monetarystimulus. Indonesia’s financial markets were closed on account of a nationalholiday.